Title
AN ACT CONCERNING ENERGY CONSERVATION REAL PROPERTY TAX CREDIT for the purpose of increasing the amount of the tax credit cap for real property for residential homeowners who utilize solar or geothermal energy conservation devices.
Background
The County Council enacted CB-11-2008 on July 23, 2008, to create a tax credit for real property for residential homeowners who utilize solar or geothermal energy conservation devices as a means of providing energy efficient use in private dwellings in the County. The bill allowed for a tax credit for solar or geothermal system purchases which is the lesser of 50% of eligible costs or $5,000 for a heating system or $1,500 for a hot water supply system. During the fiscal year, tax credits granted could not exceed $250,000. Since 2010, the second year of implementation of the tax credit, the maximum annual credits allowed have been provided and a waiting list has developed. The current waiting list extends to FY 2029. Due to the high demand, various surrounding counties have suspended their alternative energy tax credit programs, including Montgomery County and Howard County. Baltimore County has a waiting list until 2024. The proposed legislation will increase the tax credit funding cap to $500,000 which will decrease the wait time to receive the tax credit.